Consumer prices grow slowly and inevitably

In order to eliminate the disparity in food prices between Russia and Belarus, the government is planning to raise prices by 5-10% every month. Mass-scale devaluation in terms of open borders within the Customs Union resulted in decreasing real incomes and also in vanishing of goods from shelves.

The Ministry of Economy has increased the price of natural gas and heating tariffs by 10% for some categories of consumers (hospitals, kindergartens, etc.) that pay for energy at the same rate as the population.

Selling prices for a number of socially important goods: bread, bread, milk, yogurt, sour cream and cottage cheese, etc have been increased by 5%.

Comment

In order to eliminate the disparity in food prices between Russia and Belarus, the government is planning to raise prices by 5-10% every month. However in the current circumstances it could result in higher inflation and money growth. Therefore, the large-scale devaluation in terms of open borders within the Customs Union resulted in decreasing real incomes and also in vanishing of goods from the shelves. Belarus has no solutions how to fight against the mass-scale export of goods to Russia bearing open borders in mind.